News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bearish
Wall Street
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
GBP/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • The US Dollar may fall versus ASEAN currencies if dovish Fed speak extends the boost in sentiment after a huge miss in non-farm payrolls. USD/PHP is eyeing the Philippine Central Bank. Get your market update here:https://t.co/BKjG92HWzX https://t.co/8MhgacRMO9
  • Bearish Gartley Pattern Hints at Downward Potential for Nas100 - #NDX chart https://t.co/37TnsEsOqf
  • Japan's Aso: - Around 4 trillion Yen left in reserve funds - It is unlikely that reserve funds will be insufficient - BBG $USDJPY
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Gold: -0.15% Oil - US Crude: -0.48% Silver: -0.48% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/9IUnKsOJmx
  • Global stock markets may see turbulent volatility if darkening clouds over Washington’s relations with Beijing turn into a geopolitical storm. Which assets will be the lifeboat? Find out here:https://t.co/RkFI6qAyik https://t.co/dS3yMypxer
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.05% 🇨🇭CHF: 0.03% 🇦🇺AUD: 0.02% 🇨🇦CAD: -0.04% 🇳🇿NZD: -0.08% 🇯🇵JPY: -0.12% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/8RjWgZnVuC
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 91.19%, while traders in France 40 are at opposite extremes with 70.12%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/V8ZnsZ4edi
  • S&P 500 Index Rebound May Offer Relief for Nikkei 225 and ASX 200 https://www.dailyfx.com/forex/market_alert/2021/05/14/SP-500-Index-Rebound-May-Offer-Relief-for-Nikkei-225-and-ASX-200.html https://t.co/ZnGfxTKewh
  • Update on #Cryptocurrencies #BITCOIN +1.94% #BITCOINCASH +5.98% #ETHEREUM +3.83% #RIPPLE +4.27% #LITECOIN +4.10% #DOGECOIN +10.44%
  • The British Pound gained aggressively, placing the focus on levels that may send GBP/USD and GBP/JPY lower, with EUR/GBP still open to a turn higher. Will Sterling’s advance continue? Get your $GBP market update from @ddubrovskyFX here:https://t.co/PHoCHVc20M https://t.co/NKKwqiEESG
Forex: USD to Benefit From Less-Dovish Fed, More JPY Weakness Ahead

Forex: USD to Benefit From Less-Dovish Fed, More JPY Weakness Ahead

Research, Research Team

Index

Last

High

Low

Daily Change (%)

Daily Range (% of ATR)

DJ-FXCM Dollar Index

10157.27

10174.14

10152.21

0.07

53.28%

Forex_USD_to_Benefit_From_Less-Dovish_Fed_More_JPY_Weakness_Ahead_body_ScreenShot208.png, Forex: USD to Benefit From Less-Dovish Fed, More JPY Weakness Ahead

The Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) remains 0.07 higher from the open despite the dismal 4Q GDP print, the greenback continues to pivot around the 10,150 figure, and we may see the reserve currency coil up for another run at 10,200 should we see the Federal Open Market Committee (FOMC) scale back its willingness to expand the balance sheet further. As the USDOLLAR threatens the upper bounds of the bullish channel carried over from the previous year, market participants are certainly looking for a near-term correction in the index, but the dollar may continue to gain ground ahead of the highly anticipate Non-Farm Payrolls report due out on Friday as the 30-minute relative strength index carves out an upward trend. As the world’s largest economy is expected to add another 161K jobs in January, the ongoing recovery in the labor market should increase the appeal of the USD, and the bullish sentiment surrounding the dollar may gather pace over the course of the year as the economic recovery becomes more broad-based.

Forex_USD_to_Benefit_From_Less-Dovish_Fed_More_JPY_Weakness_Ahead_body_ScreenShot209.png, Forex: USD to Benefit From Less-Dovish Fed, More JPY Weakness Ahead

Although the FOMC is widely expected to maintain its highly accommodative policy stance in January, we should see the committee continue to highlight the resilience in private sector consumption along with the budding recovery in the housing market, and the Fed may see scope to conclude its easing cycle in 2013 as the region gets on a more sustainable path. In turn, we may see a growing number of central bank officials start to lay out a tentative exit strategy over the coming months, and the FOMC may switch gears later this year as the strength of the U.S. consumer raises the prospects for future growth. Although the technical outlook points to a short-term correction, we may see the USDOLLAR make a fresh high before moving lower, and the reserve currency may continue to retrace the decline from the previous year amid the shift in the policy outlook.

Forex_USD_to_Benefit_From_Less-Dovish_Fed_More_JPY_Weakness_Ahead_body_ScreenShot210.png, Forex: USD to Benefit From Less-Dovish Fed, More JPY Weakness Ahead

Two of the four components weakened against the greenback, led by a 0.63 percent decline in the Australian dollar, while the Japanese Yen shed 0.41 percent as Prime Minister Shinzo Abe continues to threaten the Bank of Japan’s (BoJ) independence. Indeed, Mr. Abe continued to float the idea of changing the central bank’s mandate in order to quickly achieve the 2 percent target for inflation, and the BoJ may come under increased pressure over the near-term as the new government looks to target the local currency. However, we’ve seen Governor Masaaki Shirakawa refrain from adopting an unlimited asset purchase program in order to preserve the central bank’s credibility, but the BoJ may struggle to preserve its independence as Mr. Shirakawa is set to leave the helm later this year. Although the sharp rally in the USDJPY remains overbought, we’re expecting a fairly muted correction in the exchange rate, and will look to buy dips in the dollar-yen as the transition in power dampens the appeal of the low-yielding currency.

--- Written by David Song, Currency Analyst

To contact David, e-mail dsong@dailyfx.com. Follow me on Twitter at @DavidJSong.

To be added to David's e-mail distribution list, please follow this link.

New to FX? Watch this Video

Join us to discuss the outlook for the major currencies on the DailyFXForums

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES